On Feb. 1, defense and aerospace giant Raytheon (NYSE:RTN) released fourth-quarter earnings for the period ended Dec. 31.
- Sales, earnings, and cash flow were all up.
- Management is forecasting earnings in the range of $2.85-$3 per share for fiscal 2007.
- That translates into a forward P/E around 18 or 19.
- In Motley Fool CAPS, the stock carries a middling three-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$5,722.0 |
$5,124.0 |
11.7% |
|
Net Profit |
$292.0 |
$231.0 |
26.4% |
|
EPS |
$0.65 |
$0.51 |
27.5% |
|
Diluted Shares |
452.3 |
449.0 |
0.7% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
18.2% |
17.3% |
1.0 |
|
Operating Margin |
8.6% |
7.7% |
0.8 |
|
Net Margin |
5.1% |
4.5% |
0.6 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,460.0 |
$1,202.0 |
104.7% |
|
Accounts Rec. |
$178.0 |
$277.0 |
(35.7%) |
|
Inventory |
$487.0 |
$460.0 |
5.9% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$920.0 |
$813.0 |
13.2% |
|
Long-Term Debt |
$3,278.0 |
$3,969.0 |
(17.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,551.0 |
$1,227.0 |
26.4% |
|
Capital Expenditures |
$149.0 |
$142.0 |
4.9% |
|
Free Cash Flow |
$1,402.0 |
$1,085.0 |
29.2% |
Find out why Fools always follow the money.
Related Companies:
- Lockheed Martin (NYSE:LMT)
- Honeywell (NYSE:HON)
- United Technologies (NYSE:UTX)
- Boeing (NYSE:BA)
- Northrop Grumman (NYSE:NOC)
Related Foolishness:
How do you think Raytheon will do in the next few weeks? How about the next few years? Join CAPS, the Fool's new community-intelligence stock-rating service, and tell more than 21,000 fellow investors how you feel.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
